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Datacentrix steps up cloud strategy

The group buys eNetworks for an undisclosed amount.

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 28 Aug 2013
Datacentrix is moving ahead with its cloud strategy, says CEO Ahmed Mahomed.
Datacentrix is moving ahead with its cloud strategy, says CEO Ahmed Mahomed.

Buying eNetworks will allow Datacentrix to move forward with its cloud strategy and give it control over the pipeline between the end-user and its data centres.

The group says in a statement it has bought eNetworks for an undisclosed amount, as it is growing and enhancing its cloud computing capabilities. "The acquisition provides Datacentrix access to highly-skilled resources, electronic communications networks and licences, thereby strengthening Datacentrix's capability to build, operate and provide network services."

CEO Ahmed Mahomed says while the move will see Datacentrix enter the Internet service provider space to some extent, this is not its core reason for doing the deal. He explains it will allow the company to be in control of the pipe, and put services across the connection.

Datacentrix has been building on its cloud capabilities and has implemented a tier three cloud-ready data centre, a command centre and improved service desk capabilities in its managed services unit. During this financial year, its target was to extend the cloud offerings.

Mahomed says eNetworks will be an important component of Datacentrix's cloud offering and brings with it technical expertise and relevant licences to lay fibre, for example. The company also has capabilities around the cloud space, he adds.

Datacentrix will expand its cloud offerings, Mahomed notes.

eNetworks was established in 1999, and provides bandwidth and Internet services including cloud hosting, Web hosting and VOIP. Based in Cape Town, the company has core infrastructure located in data centres in Cape Town, Johannesburg and Durban.

Its services include fibre, cloud hosting, ADSL, voice, e-mail and firewall security.

eNetworks was founded by Jonathan Maliepaard, who is its CEO, and was later joined by partners Jaap Scholten (COO), Saul Stein (technical manager) and Dumisa Melane (customer relationship manager). More recently, Gareth Lynch joined as head of business development.

In the year to February, Datacentrix reported revenue growth of 9%, from R1.758 billion to R1.919 billion. Earnings declined by 15%, from R90.8 million to R77.3 million, and headline earnings per share came in at 39.6c, compared with 46.9c a year ago.

The effective date of the acquisition is 1 May 2013 and all conditions precedent need to be fulfilled by no later than 30 September 2013.

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